The Floki Inu (FLOKI) community has voted in favor of a proposal to burn 4.2 trillion FLOKI tokens on its cross-chain bridge. Moreover, the community voted to reduce transaction fees. At the current rate, the 4.2 trillion FLOKI tokens are worth over $100 million.
According to developers, the proposal was approved by 99.97% in support of burning the bridge tokens and 0.03% against it. The tokens will be burned at 8 PM UTC on Feb. 9, 2023. Moreover, the Floki Inu transaction tax will be reduced to 0.3% as of 8 PM UTC on Feb. 3.
Another justification given in the Floki Inu proposal was the security issues related to bridges. Since the cross-chain bridge stores 55.7% of what FLOKI’s total circulating supply should be, an exploit on it would have a disastrous effect on the project. Over $2 billion was lost or stolen from cross-chain bridges alone in the past year.
With a 10 trillion token supply originally on Ethereum, Floki Inu subsequently moved to the quicker and less expensive BNB Chain in 2021 in response to community requests. A new contract with a total quantity of 10 trillion tokens had to be put into operation by the team on the BNB Chain.
However, in order to prevent the FLOKI’s total circulating quantity from ever going over a total supply of 10 trillion tokens and to enable users to move their FLOKI from Ethereum to BNB Chain and vice versa, required a cross-chain bridge.
Floki Inu Spikes triple digits
Floki Inu’s price has already begun to react to the new burn proposal. The cryptocurrency began to make serious gains on Jan. 27 and onwards. The popular dog-themed cryptocurrency project has rallied 105% in the last week. Moreover, the project has spiked by 196.9% in the 30-day chart.
The project is currently ranked 162, with a market cap of $225.4 million. At press time, FLOKI was trading at $0.00002407, up by 10% in the last 24 hours.